California Labor &
Employment Law Blog

Jan. 5 2009

California Employers Required to Send Earned Income Tax Credit Notice

Topics: Legal Information

California employers are reminded that they are required by California law to provide all employees with a notice of potential eligibility for the federal Earned Income Tax Credit. California Revenue and Taxation Code section 19853 requires that all employers provide this notice to all employees either at the same time as their annual wage summary (Form W-2), or within one week of providing the W-2. It is not sufficient to provide the notice on an employee bulletin board or through internal company mail. Instead, the notice must be hand-delivered to employees or mailed to the employees' last known home address on file with the company. The notice must generally provide instructions on how to obtain information and forms from the IRS regarding the Earned Income Tax Credit. The following sample language satisfies this requirement:

"Based on your annual earnings, you may be eligible to receive the Earned Income Tax Credit from the federal government. The Earned Income Tax Credit is a refundable federal income tax credit for low-income working individuals and families. The Earned Income Tax Credit has no effect on certain welfare benefits. In most cases, Earned Income Tax Credit payments will not be used to determine eligibility for Medicaid, supplemental security income, food stamps, low-income housing, or most temporary assistance for needy families payments. Even if you do not owe federal taxes, you must file a tax return to receive the Earned Income Tax Credit. Be sure to fill out the Earned Income Tax Credit form in the federal income tax return booklet. For information regarding your eligibility to receive the Earned Income Tax Credit, including information on how to obtain the IRS Notice 797 or Form W-5, or any other necessary forms and instructions, contact the Internal Revenue Service by calling 1-800-829-3676 or through its website at www.IRS.gov."

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For over 20 years, CDF has distinguished itself as one of the top employment, labor and immigration firms in California, representing employers in single-plaintiff and class action lawsuits and advising employers on related legal compliance and risk avoidance. We cover the state, with five locations from Sacramento to San Diego.

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About the Editor

Robin Largent represents employers, including major food and retail companies, in all types of employment litigation: wrongful termination, retaliation, breach of contract, wage and hour (California Labor Code) and unfair competition. She also regularly counsels and advises California employers on issues of compliance with California and federal employment laws.
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